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In a significant policy reversal, Zomato — India’s leading food delivery platform and a subsidiary of Eternal — formally withdrew its controversial “price disparity” clause from restaurant partner contracts on April 23, 2026. The move marks a pivotal shift in the relationship between digital food platforms and their restaurant partners.
The clause and its implications
Zomato’s “price disparity” provision obligated restaurant partners to maintain identical pricing across all channels — whether on the platform, at dine-in outlets, or through independent delivery services. Any deviation exposed restaurants to a penalty of exactly three times the differential amount per order, monitored through mystery shopping and customer complaints. Although embedded in contracts for several years, the clause was never enforced — yet its existence raised serious concerns about pricing autonomy and platform overreach.
Restaurant associations push back
The National Restaurant Association of India, representing over 500,000 establishments nationwide, led the opposition, arguing the clause constituted an unfair business practice that stripped restaurant owners of their fundamental right to independently determine pricing. NRAI president Sagar J. Daryani welcomed the reversal: “It’s our product and should be our pricing. We appreciate their assurance that price parity will no longer be enforced.”
Antitrust scrutiny and legal risk
The withdrawal also reflects mounting regulatory pressure. The Competition Commission of India has been investigating both Zomato and rival Swiggy since 2022 for alleged anti-competitive conduct — with no final ruling issued as of April 2026. Legal experts drew parallels to a 2022 CCI decision that directed travel platforms MakeMyTrip and GoIbibo to remove similar price parity clauses. Zomato’s proactive removal is widely regarded as a preemptive step to mitigate regulatory exposure.
Broader significance for India’s food services sector
The reversal arrives at a defining moment for India’s food services industry, valued at $94 billion and projected to reach $153 billion by 2031. As competition intensifies, the balance of power between platforms and restaurant partners is visibly shifting toward greater collaboration and transparency. For restaurant owners, this decision represents a meaningful restoration of commercial autonomy — and a precedent that may reshape platform-partner relations across the sector.
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